If you're looking for a way to improve your IT operations without hiring more staff or breaking the bank, you’re probably considering co-managed IT services.
Co-managed IT is a flexible and cost-effective solution that allows you to leverage the expertise and resources of an external IT provider while retaining control and ownership of your internal IT team.
Intelligent Technical Solutions (ITS) is an IT support provider that offers co-managed IT services in Chicago. We've been in the business for 20 years and continue to help companies understand what it takes to get co-managed IT.
But how much does co-managed IT cost in Chicago? And what factors affect the price? In this article, we will talk about:
- The cost of co-managed IT services in Chicago
- The factors affecting co-managed IT pricing
Knowing these things should help you decide whether your company can and should use a co-managed IT setup.
Cost of Co-managed IT Services in Chicago
On average, co-managed IT costs two-thirds the cost of fully managed IT. So, if an MSP offers managed IT at $150 per user, expect $100 per user for a co-managed IT setup.
To give you a better idea, managed IT usually costs $3,000 to $4,000 monthly or $36,000 to $48,000 annually. Based on that, co-managed IT can cost between $24,000 to $32,000 per year.
Aside from the recurring fees for the service, MSPs also charge an upfront onboarding fee. Onboarding is a thorough and complex process of assessing your internal IT resources and integrating their own. It often costs one month of co-managed IT and can go up or down depending on your needed service and equipment.
Overall, the total cost of co-managed IT services in Chicago is two-thirds of managed IT costs plus onboarding fees.
Co-managed IT Pricing in Chicago vs. Other Locations
Co-managed IT costs are generally higher in Chicago than in other locations, such as Kansas or Texas, since Chicago is a High Cost of Living Area (HCOL). However, the location matters less than you think.
Your location will matter more if you’re hiring purely in-house IT staff. The average annual salary for an IT tech in Chicago is approximately $68,000 per year. That is over twice the average cost of co-managed IT services for just one expert – excluding equipment, training, taxes, leadership, and retention costs.
So, if your location isn’t the biggest factor in your co-managed IT bill, what is?
3 Factors That Affect Co-managed IT Costs in Chicago
Instead of focusing on your location, it’s better to focus on the following factors to estimate your co-managed IT bill.
1. Number of locations
Many challenges come with co-managing a business with multiple locations. For one, your MSP needs to support each site adequately. Second, they must ensure that your entire network is coordinated. Finally, they must merge your expansive IT infrastructure with their equipment and strategies.
Accomplishing all that requires high expertise, considerable resources, and high costs. The more locations you have, the more you will be expected to pay out.
2. Number of users
Another critical factor your MSP will consider when calculating costs is the number of users or devices they must support. In fact, you will often find that MSPs charge per user or device.
MSPs adopt this pricing because of the work it takes to manage workstations, especially in the modern era where a user usually has multiple devices. They account for onboarding, management, and support fees for each user and endpoint.
3. Existing IT setup
The third and final thing that can affect your co-managed IT costs in Chicago is the state of your existing IT infrastructure. Businesses that seek out co-managed IT services typically have the following setups:
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One-person IT
As the name suggests, this is a setup where one person handles all IT tasks in the business. This setup leaves little room for scaling and upskilling. Your IT person will be too busy keeping your business running to learn new tech that can improve your IT solutions.
On top of that, as your business grows, they'll eventually become overwhelmed and need help managing your IT. An external party could be the help they need.
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Leaderless team
On the other hand, a leaderless team is composed purely of entry-level technicians with little to no expertise. This team will need help resolving high-level and specialized issues, such as cybersecurity threats. If you partner with an MSP, they can fill this role and guide your team toward managing and improving your tech.
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Project-needing team
Last is the project-needing team or an in-house team that is overloaded just tending to day-to-day IT tasks. They struggle to make time for mission-critical projects like migrating to the cloud or implementing cybersecurity strategies. When the time comes that you need these kinds of specialized services done for your business, you can depend on your MSP.
Ready to Invest in Co-managed IT?
Co-managed IT services in Chicago will help your business stand out with efficient communication lines and reliable services. And although the price tag may seem steep initially, it's more cost-effective than alternatives like fully managed IT and hiring more in-house experts.
If you want numbers more specific to your business, you can use our IT cost calculator. We built this tool to help businesses know how much it would take to invest in our IT services. You can also meet with one of our experts for a more detailed explanation of what our co-managed IT services can do for the success of your business.
And if you want to know more about co-managed IT, check out these pieces of content from our Learning Center:
- Co-Managed IT: A Complete Guide For Businesses
- The 6 Best Co-Managed IT Service Providers for US-Based SMBs
- Objective Comparison of Chicago Managed Services: ITS vs. Framework IT
- How to Choose the Right Co-managed IT Provider (5 Easy Steps)